All things kept aside, the Indian Stock Markets this year have largely been about large scale PSU disinvestments from the government. If that needed any justification, government has mopped up Rs 40,000 crore in the year 2010 by diluting its stake in nine state owned companies
At the start of the year, government announced a list of PSUs for disinvestment in order to raise capital and cut down its borrowings. The government also expected improved performance as a result of disinvestment though if the asset growth of PSUs is to be believed, government may not have entirely achieved its goal of improved performance
Otherwise, the PSUs have hogged most of the limelight this year. Some of the major disinvestments included
FPO for NTPC where the government ended up raising Rs 8480 crore by diluting a 5% stake
FPO for REC where the government raised Rs 882 crore by diluting a 5% stake
FPO for NMDC where the government raised Rs 9930 crore by diluting a 8.83% stake
Many more disinvestments happened via the IPO/FPO route including Engineers India, Power Grid, SJVN etc. helping the government mop up thousands of crores in raised capital
The fag end of the year saw two of the most successful disinvestments with one of them being the biggest IPO of the season
Coal India IPO was the country’s biggest raising over $3.5 Bn subscribing over 15 times
The recently closed MOIL IPO was also a huge success listing at a premium of over 50%
So even if the stock markets played hide and seek with investors by being volatile for the most part of the year, government sure seemed to have had the last laugh as far as disinvestments are concerned
Did you invest in any of the disinvestment companies? Did you make a windfall too with your investments
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